FOR IMMEDIATE RELEASE

Contact: Tim Bannon
203-588-8450


Purdue Pharma L.P. Announces Agreement to End OxyContin® Patent Lawsuit with Teva Pharmaceuticals

Teva agrees to stop selling infringing products

Stamford, CT – (August 29, 2006) – Purdue Pharma L.P. of Stamford, Connecticut and Teva Pharmaceuticals USA, Inc. of North Wales, Pennsylvania have agreed to end their lawsuit concerning certain Purdue Pharma patents on OxyContin® (oxycodone HCl controlled-release) Tablets. Under the terms of the settlement agreement, Teva will cease selling its infringing oxycodone products at a future date and Purdue Pharma will not pursue damages against Teva for past infringement. The settlement agreement is subject to certain contingencies, including review by the United States antitrust agencies and the United States District Court for the Southern District of New York.

"We are pleased that Teva will respect our invention of an important medicine. I believe we would have prevailed in our lawsuit and the court eventually would have ordered Teva to stop selling its infringing product. Because of today’s agreement, we no longer have to wait for a trial, and possible appeals, in order to secure the result provided in the agreement. We have avoided the risks, uncertainty and costs of continued litigation," said Michael Friedman, President and CEO of Purdue Pharma, in announcing the end of the lawsuit.

"Our first commitment is and always will be to serve both physicians and patients with innovative prescription and non-prescription products. In service of that commitment, we will continue to protect our important inventions against all infringers," Mr. Friedman concluded.

Purdue Pharma has filed infringement actions to protect its OxyContin patents against other companies. On February 1, 2006, the United States Court of Appeals for the Federal Circuit ruled the Purdue patents to have been infringed by extended-release oxycodone products sold by Endo Pharmaceuticals Inc. of Chadds Ford, Pennsylvania.

Purdue Pharma L.P. and its associated U.S. companies are privately-held pharmaceutical companies known for pioneering research on persistent pain. Headquartered in Stamford, CT, Purdue is engaged in the research, development, production, and distribution of both prescription and over-the-counter medicines and hospital products. Additional information about Purdue can be found at www.purduepharma.com.

The professional product labeling for OxyContin® Tablets contains the following boxed warning:

WARNING:

OxyContin is an opioid agonist and a Schedule II controlled substance with an abuse liability similar to morphine.

Oxycodone can be abused in a manner similar to other opioid agonists, legal or illicit. This should be considered when prescribing or dispensing OxyContin in situations where the physician or pharmacist is concerned about an increased risk of misuse, abuse, or diversion.

OxyContin Tablets are a controlled-release oral formulation of oxycodone hydrochloride indicated for the management of moderate to severe pain when a continuous, around-the-clock analgesic is needed for an extended period of time.

OxyContin Tablets are NOT intended for use as a prn analgesic.

OxyContin 80 mg and 160 mg Tablets ARE FOR USE IN OPIOID-TOLERANT PATIENTS ONLY. These tablet strengths may cause fatal respiratory depression when administered to patients not previously exposed to opioids.

OxyContin TABLETS ARE TO BE SWALLOWED WHOLE AND ARE NOT TO BE BROKEN, CHEWED, OR CRUSHED. TAKING BROKEN, CHEWED, OR CRUSHED OxyContin TABLETS LEADS TO RAPID RELEASE AND ABSORPTION OF A POTENTIALLY FATAL DOSE OF OXYCODONE.

Full prescribing information for OxyContin is available at
http://www.purduepharma.com/PRESSROOM/PI/OXYCONTIN_PI.PDF.

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